Chapter 2 HRM

1. Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Learning Objectives After studying this chapter, you should be able to: Define equal employment opportunity. Describe the intent of the Equal Pay Act of 1963. Describe the intent of Title VII of the Civil Rights Act of 1964. Define disparate treatment and disparate impact. Discuss the purpose of the Age Discrimination in Employment Act of 1967. Discuss the purpose of the Rehabilitation Act of 1973.

3. Learning Objectives (cont.) Describe the intent of the Vietnam-Era Veterans Readjustment Assistance Act of 1974. Discuss the purpose of the Pregnancy Discrimination Act of 1978. Describe the intent of the Immigration Reform and Control Act of 1986. Describe the purpose of the Americans with Disabilities Act of 1990. Explain the purpose of the Older Workers Benefit Protection Act of 1990.

4. Learning Objectives (cont.) Discuss the intent of the Civil Rights Act of 1991. Explain the intent of the Family and Medical Leave Act of 1993. Discuss the purposes of Executive Orders 11246, 11375, and 11478. Describe the significance of the landmark Supreme Court decisions Name the federal agencies that have primary responsibility for enforcing equal employment opportunity.

5. Equal Employment Opportunity Laws • Equal employment opportunity • The right of all people to work and to advance on the basis of merit, ability, and potential • Discrimination in society and in the workplace gave rise to the civil rights movement, which in turn resulted in the U.S. Congress’s passage of laws to ensure equal employment opportunity

6. Equal Pay Act (1963) • Equal Pay Act • Prohibits sex-based discrimination in rates of pay for men and women working on the same or similar jobs • Coverage of the Equal Pay Act is coextensive with the coverage of minimum wage provisions of FLSA

7. Equal Pay Act (1963) • Permits differences in wages if payment is based on seniority, merit, quantity and quality of production, or a differential due to any other factor than gender • Prohibits employers from attaining compliance with the Act by reducing wage rate of any employee

8. Title VII, Civil Rights Act (1964) • Title VII, Civil Rights Act • Keystone federal legislation; covers disparate treatment and disparate impact discrimination; • created the Equal Employment Opportunity Commission

9. Title VII, Civil Rights Act (1964) • Disparate treatment • Intentional discrimination; treating one class of employees differently from other employees • Disparate impact, • Unintentional discrimination involving employment practices that appear to be neutral but adversely affect a protected class of people

10. Title VII, Civil Rights Act (1964) • Organizations covered by the provisions of Title VII: • All private employers of 15 or more people who are employed 20 or more weeks per year • All public and private educational institutions • State and local governments • Public and private employment agencies • Labor unions that maintain and operate a hiring hall or hiring office or have 15 or more members • Joint labor–management committees for apprenticeships and training

11. Title VII, Civil Rights Act (1964) Title VII created the Equal Employment Opportunity Commission (EEOC) to administer the act and to prohibit covered organizations from engaging in any unlawful employment practices

12. Age Discrimination in Employment Act (1967) • Age Discrimination in Employment Act • Prohibits discrimination against employees over 40 years through 69 years of age by all companies employing 20 or more people in the private sector • Amendment (1987) – Eliminates mandatory retirement at age 70 for employees of firms with 20 or more employees

13. Age Discrimination in Employment Act (1967) • Organizations covered by the ADEA: • Private employers of 20 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year • Labor organizations • Employment agencies • State and local governments • Federal government agencies, with certain differences; for example, federal employees cannot be forced to retire at any age

14. Age Discrimination in Employment Act (1967) • Exception – Employees in bona fide executive or high policymaking positions • Permits mandatory retirement at age 65 for high-level executives with pensions exceeding $44,000 a year

15. Age Discrimination in Employment Act (1967) • Section 4(f) of the ADEA sets forth several conditions under which the act does not apply • Age is a bona fide occupational qualification • It is not illegal for an employer to discipline or discharge an individual within the protected age group for good cause

16. Rehabilitation Act (1973) • Prohibits discrimination against handicapped individuals • Prohibits discrimination against handicapped individuals by employers with federal contracts and subcontracts in excess of $2,500 • Requires written affirmative action plans (AAPs) from employers of 50 or more employees and federal contracts of $50,000 or more

17. Rehabilitation Act (1973) Prohibits discrimination against handicapped individuals by federal agencies Requires affirmative action by federal agencies to provide employment opportunities for handicapped persons Requires federal buildings to be accessible to handicapped persons Prohibits discrimination against handicapped individuals by recipients of federal financial assistance

18. Rehabilitation Act (1973) • Handicapped individual • a person who has a physical or mental impairment that substantially limits one or more of major life activities, has a record of such impairment, or is regarded as having such an impairment • Primary responsibility for enforcing this act lies with the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor

19. Vietnam-Era Veterans Readjustment Assistance Act (1974) • Vietnam-Era Veterans Readjustment Assistance Act • Prohibits federal government contractors and subcontractors with federal government contracts of $10,000 or more from discriminating in hiring and promoting Vietnam and disabled veterans • Requires employers with 50 or more employees and contracts exceeding $50,000 to have written affirmative action programs for people protected by this act

20. Pregnancy Discrimination Act (1978) • Pregnancy Discrimination Act • Requires employers to treat pregnancy just like any other medical condition with regard to fringe benefits and leave policies

21. Pregnancy Discrimination Act (1978) • EEOC has taken the view that • An employer may not deny its unmarried employees pregnancy benefits • If pregnancy benefits are given to female employees, they must also be extended to the spouses of male employees

22. Immigration Reform and Control Act (1986) • Immigration Reform and Control Act • Makes it illegal to hire, recruit, or refer for U.S. employment anyone known to be an unauthorized alien

23. Americans with Disabilities Act (1990) • Americans with Disabilities Act (ADA) • Gives disabled persons sharply increased access to services and jobs

24. Americans with Disabilities Act (1990) • Under this law, employers may not • Discriminate, in hiring and firing, against disabled persons who are qualified for a job • Inquire whether an applicant has a disability, • Limit advancement opportunity for disabled employees • Use tests or job requirements that tend to screen out disabled applicants • Participate in contractual arrangements that discriminate against disabled persons

25. Americans with Disabilities Act (1990) • Employers • Must provide reasonable accommodations for disabled employees • Do not have to provide accommodations that impose an undue hardship on business operations • Mental disability • mental impairment that substantially limits one or more of the major life activities of an individual, or a record of such impairment or being regarded as having such an impairment

26. Suggestions for Making the Workplace Accessible to Disabled Workers Table 2.1

27. Older Workers Benefit Protection Act (1990) • Older Workers Benefit Protection Act • Provides protection for employees over 40 years of age in regard to fringe benefits and gives employees time to consider an early retirement offer

28. Civil Rights Act (1991) • Civil Rights Act • Permits women, persons with disabilities, and persons who are religious minorities to have a jury trial and sue for punitive damages if they can prove intentional hiring and workplace discrimination

29. Civil Rights Act (1991) Requires companies to provide evidence that the business practice that led to discrimination was not discriminatory but was job related for the position in question and consistent with business necessity Places a cap on amount of damages a victim of nonracial, intentional discrimination can collect, based on the size of firm

30. Family and Medical Leave Act (1993) • Family and Medical Leave Act • Enables qualified employees to take prolonged unpaid leave for family and health-related reasons without fear of losing their jobs

31. Family and Medical Leave Act (1993) • Under the law, employees can use this leave in the event • they are seriously ill • an immediate family member is ill • birth, adoption, or placement for foster care of a child

32. Executive Orders • Executive orders • Orders issued by the President of the United States for managing and operating federal government agencies

33. Executive Orders 11246 • Executive Order 11246 • Requires every nonexempt federal contractor and subcontractor not to discriminate against employees and applicants because of race, sex, color, religion, or national origin

34. Executive Orders 11246 • Utilization evaluation • part of the affirmative action plan that analyzes minority group representation in all job categories; past and present hiring practices; and upgrades, promotions, and transfers

35. Executive Orders 11375 and 11478 • 11375 amended 11246 and prohibited sex-based wage discrimination for government contractors • In 1969 the OPM issued Executive Order 11478, which in part suspended Executive Order 11246, along with revised regulations • The new regulations merely modified a number of the procedures under the previous orders and regulations

36. State and Local Government Equal Employment Laws • As a result of the Supremacy Clause of the U.S. Constitution, many state and local laws became invalid after passage of the Civil Rights Act and other equal employment legislation • No federal laws prohibit states from passing laws against discrimination in areas not covered by federal law as long as it does not require or permit an act that is unlawful under federal legislation

37. Landmark Court Cases • Griggs v. Duke Power Company • Decision established several significant points concerning equal employment opportunity • Consequences of employment practices, not simply intent or motivation of employer, are the thrust of Title VII in that practices that discriminate against one group more than another or continue past patterns of discrimination are illegal regardless of nondiscriminatory intent of employer

38. Landmark Court Cases • Disparate impact doctrine • Provides that when the plaintiff shows that an employment practice disproportionately excludes groups protected by Title VII, burden of proof shifts to defendant to prove that the standard reasonably relates to job performance

39. Landmark Court Cases • McDonnell Douglas v. Green • ruling set forth standards for burden of proof in discrimination cases • Complainant in a Title VII case carries initial burden of proof in establishing a prima facie case of discrimination.

40. McDonnell-Douglas Test The person belongs to a racial minority The person applied and was qualified for a job for which the employer was seeking applicants Despite his or her qualifications, the applicant was rejected After the rejection, the position remained open and the employer continued to seek applicants from persons of the complainant’s qualifications

41. Landmark Court Cases • Albemarle Paper v. Moody • Reaffirmed that tests used in employment decisions must be job related, and the use of EEOC guidelines in validating tests • University of California Regents v. Bakke • Reverse discrimination – Condition under which there is alleged preferential treatment of one group (minority or women) over another group rather than equal opportunity

42. Landmark Court Cases • United Steelworkers of America v. Weber – Court ruled that Kaiser’s affirmative action plan was permissible because it • Was designed to break down old patterns of segregation • Did not involve discharge of innocent third parties • Did not have any barriers to advancement of white employees • Was a temporary measure to eliminate discrimination

43. Landmark Court Cases • Connecticut v. Teal – Conclusion reached from this case is that bottom line percentages are not determinative • Bottom line concept – When overall selection process does not have an adverse impact, the government will usually not examine individual components of that process for adverse impact or evidence of validity

44. Landmark Court Cases • Memphis Firefighters, Local 1784 v. Stotts • Although not banning use of affirmative action programs, this decision did indicate that a seniority system may limit use of certain measures • City of Richmond v. J. A. Crosan Company • Court stated that state and local governments must avoid racial quotas and must take affirmative action steps only to correct well-documented examples of past discrimination

45. Landmark Court Cases • Wards Cove v. Atonio • When minorities allege that statistics show they are victims of discrimination, employers only have burden of producing evidence that there is a legitimate reason for its business practices • Martin v. Wilks • White firefighters could bring reverse discrimination claims against court-approved affirmative action plans

46. Landmark Court Cases • Adarand Constructors v. Peña • Questioned constitutionality of government measures designed to help minorities obtain contracts, jobs, or education • State of Texas v. Hopwood • Concluded that the law school may not use race as a factor in law school admissions

47. Landmark Court Cases • University of Michigan’s Admission Procedures • Schools cannot maintain quotas or separate admissions tracts for racial groups and that diversity cannot be defined solely on the basis of race

48. Enforcement Agencies • Equal Employment Opportunity Commission • Federal agency created under Civil Rights Act of 1964 to administer Title VII of the act and to ensure equal employment opportunity • powers were expanded in 1979 • Composed of five members, not more than three of whom may be members of the same political party

49. Equal Employment Opportunity Commission • Originally responsible for investigating discrimination based on race, color, religion, sex, or national origin • Now responsible for investigating equal pay violations, age discrimination, and discrimination against disabled persons • Develops and issues guidelines to enforce nondiscriminatory practices in all of these areas

50. Enforcement Agencies • Office of Federal Contract Compliance Programs • Office within the U.S. Department of Labor that is responsible for ensuring equal employment opportunity by federal contractors and subcontractors